Aramco Bonds Sink for Second Day

The video discusses a major debt deal that initially seemed promising but faced challenges as bond prices fell. The focus is on the 10-year bond, which saw its spread to US Treasurys widen, raising questions about the aggressive pricing and the $100 billion order book. The corporate bond market's lack of transparency and the phenomenon of padded order books are highlighted, with a look at how these practices have caught regulatory attention, especially in Europe. The role of syndicate bankers in managing pricing and avoiding sales to flippers is also examined.

What was the spread to US Treasurys for the 10-year bond on Thursday?

• 1.05%

• 1.2%

• 1.5%

• 2.0%

What is a common practice among investors in a hot bond deal?

• Selling their allocations immediately

• Avoiding participation

• Inflating their order requests

• Requesting exactly what they need

Which region has made padded order book inflation illegal?

• Asia

• North America

• Europe

• Australia

What is the responsibility of syndicate bankers in bond issuance?

• To ensure all investors get their requested allocations

• To manage the order book and pricing

• To sell bonds to flippers

• To increase the bond's face value

What should syndicate bankers avoid when selling bonds?

• Selling to long-term investors

• Selling in small tranches

• Selling to flippers

• Selling at a discount